Metals Stocks: Gold trades near 2-week peak, on track for first weekly gain this month

Gold futures edged slightly higher early Friday, as a weaker U.S. dollar has helped the precious metal on a path toward its first weekly gain this month.

December gold GCZ8, +0.32%  added $3, or 0.3%, to $1,211.20 an ounce, with the precious metal on pace to book a weekly rise of about 0.9%, representing its first weekly gain for a most-active contract since the period ended Aug. 31, according to FactSet data and based on last Friday’s close. A close at its current level would mark its best since Aug. 29.

Gains for bullion have come as the U.S. dollar has slumped by about 0.9% at 94.48 thus far this week and weakened to a two-week low, as measured by the U.S. ICE Dollar Index DXY, -0.07% a gauge of the buck against a half-dozen currencies.

“The weakening of the US dollar is giving bullion a lift, increasing the chances of seeing further recoveries,” wrote Carlo Alberto De Casa, chief analyst at ActivTrades, in a Friday research note.

“The gold price is slowly continuing its recovery, which has brought it close to the resistance placed at $1,210. If it manages to breach this level, the next target is placed at $1,230, while a return below $1,200 would denote fragility,” he wrote.

Meanwhile, December silver SIZ8, +0.15% ticked up by less than 0.1% at $14.250 an ounce. The metal is on pace for a weekly gain of 0.6% based on the most-active contract. The September front-month contract settled earlier this week at $14.05, the lowest since January 2016.

Looking ahead, a report on retail sales for August due at 8:30 a.m. Eastern may be a catalyst for price action, with economists polled by MarketWatch forecasting an advance of 0.3% from a rise of 0.5% in July. A report on import prices for August will be released at the same time.

Separately, data on industrial production for August will be released at 9:15 a.m., followed by consumer sentiment for September and business inventories for July, which will both come out at 10 a.m.

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